Novartis to consider more US investments amid Trump tax cuts

Novartis CEO Joe Jimenez said President-elect Donald Trump’s plans to slash corporate tax rates may encourage Novartis to increase its investments in the U.S., reports Reuters.

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Mr. Jimenez shared his thoughts on the tax cuts and the increasing pressure to lower U.S. drug prices Wednesday at the World Economic Forum in Davos, Switzerland.

“When we build a new manufacturing site, we think about the tax rate, we think about the economy of the country, we think about jobs, so a booming U.S. economy would make the U.S. more attractive for investment,” Mr. Jimenez said.

Mr. Jimenez expects the pressure surrounding high drug prices to continue and said Novartis has already responded by moving toward outcomes-based pricing methods, according to the report.

Novartis recently inked deals with Cigna and Aetna for its heart failure drug Entresto. Through the agreements, payments for the drug are calculated based on a reduction in hospital admissions, not on the number of pills consumed, according to Reuters.

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